For the cash-starved Kochi port depreciating rupee is proving to be a boon, at least in terms of collections through vessel-related charges. The port officials say that due to the weakening of the Indian currency the port has earned Rs 10 crore this fiscal.
The port collects vessel charges in dollars and the port's revenue is linked to the dollar.
Up to 45 per cent of ports revenue in India is linked to the dollar, especially in various port-related charges. An increase in these collections reflects in the overall revenues of major ports and this situation also holds good for Kochi port’s Vallarpadam terminal.
In the global market, Indian exports have largely thrived due to the products’ cost-competitiveness. However, they are now faced with high freight costs, which tend to limit their profit margins.